Plug Power announces strategic partnership with Allied Green Ammonia

Plug Power Inc. has announced a memorandum of understanding (MOU) with Allied Green Ammonia (AGA), signaling a major collaboration in the green hydrogen sector. Under the MOU, Plug will supply up to 3 gigawatts (GW) of its electrolyzer capacity to AGA’s planned hydrogen-to-ammonia production facility in the Northern Territory of Australia.

This partnership aims to advance AGA’s vision of establishing one of the world’s largest green ammonia production sites. Strategically located near Asia, the Gove Peninsula facility is set to capitalize on its proximity to significant markets, tapping into abundant renewable resources and robust energy infrastructure.

The Basic Engineering and Design Package (BEDP) for the project is expected to commence in mid-May 2024, with a final investment decision (FID) scheduled for the fourth quarter of 2025. The initial delivery of the electrolyzers is planned for the first quarter of 2027.

Plug Power’s CEO, Andy Marsh, highlighted the ecological and economic benefits of using electrolysis-based hydrogen for ammonia production, which offers substantial cost and carbon reductions over traditional methods. “We’re thrilled to sign this MOU and partner with AGA. Our expertise in constructing and operating large-scale hydrogen production facilities and our PEM electrolyzer manufacturing capability to support their 3GW project position us as the ideal partner for this endeavor,” said Marsh.

Alfred Benedict, Founder & Managing Director of AGA, expressed confidence in the partnership, emphasizing its strategic significance. “This agreement is a strong vote of confidence in our capabilities and a significant milestone in the planned delivery of Allied Green’s facility, which will be one of the most energy efficient green hydrogen and green ammonia projects globally,” Benedict stated.

The facility is projected to produce 2,500 metric tons of green ammonia per day, serving the growing needs of AGA’s customers in the region. The produced green hydrogen by Plug’s electrolyzers will help decarbonize the ammonia production process by replacing steam methane reforming (SMR) techniques, which are less environmentally friendly.

In addition to its involvement in the Australian project, Plug Power operates the largest PEM electrolyzer deployment in the United States and has recently announced BEDP contracts totaling 4.5 GW across the United States and Europe. The company continues to expand its global footprint in the green hydrogen economy, aiming to foster a sustainable energy future.